By: Luke Jones, Published on November 6, 2017 12:27 PM, Last Update on November 6, 2017 09:28 AM
Aviva Canada says it is happy with Bill 150, an omnibus bill that has been tabled by Quebec’s finance minister. The insurance provider said in a press release on Friday that the bill “provides clarity on the distinction between agents and independent brokers”. Aviva adds it will work to ensure consumers get a fair deal and are protected.
“Aviva has been vocal about its position in favour of the 20% broker ownership limit because independent brokers are vital to the insurance industry,” Aviva Canada said in a press release. “Aviva has always believed that it is important to appropriately regulate the differences between agents and independent brokers.”
The company has previously pushed the Government of Quebec to continue with its 20% ownership limit to “reduce the potential for any conflict of interest and to enhance consumer confidence in the insurance industry.”
In a statement in June, Aviva Canada argued the 20% law allowed the province to build a competitive insurance market that offers plenty of consumer choice and keeps customers safe. Aviva says changing the rule would mean insurance providers leave Quebec, diminishing the competitive market, and then leading to premiums increasing.
Bill 150 proposes several changes and “the Act respecting the distribution of financial products and services is amended to specify that damage insurance brokers must offer clients products from at least four insurers by insurance proposal; to require damage insurance firms to be registered as agencies or brokerage firms; to prohibit registration as a brokerage firm if a financial institution or financial group or a legal person affiliated with them has a significant interest in the firm’s decisions or equity capital, and to specify the terms according to which a brokerage firm no longer able to comply with those obligations must change its registration to registration as an agency.”
Industry leaders, customers, and stakeholders were given the chance to comment on the 20% rule during a consultation period between April 18 to June 23.